UK-EU trade war may hit Irish recovery

Ireland is at risk of being thrown into the middle of a damaging “trade war” between the UK and the EU after Britain threatened to slash its corporate tax rate and seek a hard Brexit split from Europe.

The situation was outlined by British chancellor of the exchequer Philip Hammond and in widely leaked extracts from a speech to be made by prime minister Theresa May tomorrow, sparking fears for Ireland’s tentative recovery.

In an interview with German newspaper Welt am Sonntag, Mr Hammond said his government will do “whatever we have to” to ensure Britain’s economy stays competitive after leaving the EU.